Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness?
A) inflation
B) unemployed persons falsely report themselves to be actively looking for a job
C) discouraged workers
D) people employed in the underground economy
Correct answer is: C) discouraged workers
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The risk structure of interest rates refers to
A) the amount of additional interest necessary to compensate savers for the greater risk of default on some bonds. B) the relationship among the interest rates on similar bonds with different maturities. C) the relationship among the interest rates on bonds with the same maturity. D) the amount of additional yield necessary to compensate savers for the lesser liquidity of some bonds.
Purchasers of corporate bonds lend money to a corporation.
Answer the following statement true (T) or false (F)
Exhibit 4-2 Supply and demand curves
The market shown in Exhibit 4-2 is initially in equilibrium at E1. Changes in market conditions result in a new equilibrium at E2. This change is stated as a(n):
A. increase in supply and an increase in quantity demanded. B. increase in supply and a decrease in demand. C. decrease in supply and a decrease in quantity demanded. D. increase in demand and an increase in supply.
If the demand for hand-sewn leather shoes increases, it is likely the demand for leather will:
A. decrease slightly. B. also increase. C. drop significantly and producers will use another material. D. stay the same.